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India as China's Secret Business Weapon

2018-08-07 11:29:31       source:USNews

August 6, 2018

As India rises on the global economic stage, foreign players are increasingly attracted to the seemingly unlimited and unexplored potential of the South Asian giant, which offers a market of 1.3 billion potential consumers.

The stakes are high for both India and for foreign companies looking to enter the country’s market. Foreign direct investment around the world fell by 23 percent in 2017 compared with the previous year, according to a report released earlier this year by the United Nations Conference on Trade and Development. However, the sharpest drops were experienced in developed economies, not developing economies such as India. And the ongoing threat of a trade war between the U.S. and China may make India an increasingly appealing forum for Chinese investors.

Chinese companies that have failed to penetrate the Indian market on their own have turned to investing in local companies and entrepreneurs there, thanks to government policies that encourage companies to invest more abroad. U.S. internet companies, meanwhile, still struggle with the Indian market, aiming at replicating their success at home by using the same products and services, says William Bao Bean, managing director of Chinaccelerator, one of China's leading investment and mentoring programs for software startups, operated by the fourth-most active seed investor in the world.

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